Binary Options Weekly Outlook: February 2 – February 6

February 2, 2015 – Weekly News

EUR/USD

Despite starting last week at a fresh 11-year low, the EUR/USD halted its bearish sentiment and added 200 pips by the end of the week. The increase was caused by the European Union as the new Prime Minister of Greece, Alexis Tsipras, began to negotiate the previous bailout. Worries that Greece will be against paying its debt and exit the Eurozone disappeared and the political situation calmed down. As new stimulus was added by Mario Draghi 2 weeks ago, the economic outlook should now improve.

This week, traders should await the U.S. Non-farm payrolls data which will be released on Friday. A few pieces of pre-data will also be released and will provide insight into what to expect. On Monday, the U.S. ISM Manufacturing PMI will be released and the U.S ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI will be released on Wednesday.

GBP/USD

Last week, the GBP/USD recovered from its fall caused by the expansion of monetary stimulus in the EU. During the first two days of the week, the pair added 200 pips. However, following dovish comments from the Bank of England, the momentum changed and the pair dropped back down to 1.4990. Later in the week, weak U.S GDP figures were released, showing an increase of just 2.6% pushing the pair back up to its current level of 1.5070.

This week, traders should pay attention to U.S data and to the U.K. official bank rate and rate statement. If last week’s dovish tone remains, the pair may decline again.

GOLD

Gold dropped from $1,281/ounce to $1,250/ounce and almost posted its worst weekly decline seen for 3 months. However, following weak U.S GDP figures, the metal then sharply climbed back above $1,280/ounce. Demand for the safe haven asset increased as U.S. output shrank from its previous level of 5% to 2.6%.In addition, demand for gold was spurred as the stock market declined.

This week, traders should watch the U.S labour data releases and quarterly reports which will drive U.S. stocks.

Economics events (GMT time):